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Tempur Sealy, the maker of TempurPedic mattresses and other bedding products, reported a dismal update on its business sending its shares in a tailspin.
The firm said it expects full year sales for 2016 to be down 1% to 3% from 2015 and expected EBITDA of $500 to $525 million for the full-year, 5% lower than the company’s previous projection.
CEO Scott Thompson said net sales for the third quarter were also “below expectations.”
The company, however, still expects growth for the year, just lower than previously thought.
“The midpoint of this updated guidance implies an increase in adjusted EBITDA of approximately 12% and approximately 20% growth in adjusted earnings per share compared to 2015,” said a release from Tempur Sealy announcing the news.
Following the news, shares of Tempur Sealy went into free fall, down to $58.14 per share from $74.45 per share at the close on Tuesday, just under a 22% fall.